(Closed) consolidating school loans after marriage

posted 8 years ago in Married Life
Post # 3
Member
3762 posts
Honey bee
  • Wedding: May 2010

I haven’t had to do this, but I am pretty sure that Darling Husband if co-signs for you he could be liable for these debts down the road if you fail to pay.  Student Loans are one of the hardest kinds of debt to get to “go away”.

I’m not sure why your dad co-signing at a new bank would count these as “new” debt for him.  He isnt’ taking on more debt he is just rearranging the debt he currently has in his name.  

Best luck with this! 

Post # 4
Member
3788 posts
Honey bee
  • Wedding: July 2011

It counts as new debt because you’re creating a new contract and renegotiating its terms. I am fairly sure, though a legal bee may be able to better help, that it would replace the old one, though, so it’s not as if he’d have both counting against him. Also, the debt is then newer and doesn’t necessarily have a payment history on it.

Yes, as co-signers you are both responsible for the bill. If something were to happen and you split up or you became somehow incapacitated and unable to pay, he would still be responsible for paying it (God forbid). If it got as far as debt collections, I think it could be booked under both co-makers, and it could be reported to both of your credit scores if you failed to pay. But honestly, there should be no legal repercussions to co-signing as long as you pay your bill, which I assume you plan to do anyway. And if something happens and you have problems — TALK TO THEM. Seriously, that’s the number 1 thing debtors don’t do. Keep an open line of communication and try to pay as much as you can. Some places have policies such as if you miss a payment or pay below the minimum, you’ll be turned over to collections or it will be reported to your credit, but those terms should be established when you consolidate.

Post # 5
Hostess
18644 posts
Honey Beekeeper
  • Wedding: June 2009

Amaryllis is right.  You can probably get the loan out of your dad’s name if you have been making payments since you should have a credit history now.  Right now, if you didn’t pay your loan, your dad would be responsible.  If you cosign with you husband, both of you would be responsible for the loan so if something were to happen and you break up, it would be in both of your names.

Post # 7
Hostess
18644 posts
Honey Beekeeper
  • Wedding: June 2009

Does your husband have a better credit score than you do?  If he does, you might qualify for a lower payment.  I wasn’t saying that you were going to break up or that you were going to stick your dad with the loan, just letting you know what being a cosigner means in a loan.  Is there any way that maybe you could make it a personal loan with a lower interest rate?  One thing to consider is just seeing if you can get a lower rate and then making higher payments later when you have more income instead of having them build a loan like that.

Post # 9
Member
3762 posts
Honey bee
  • Wedding: May 2010

@mrstilly: Yea I doubt a personal loan would be your way to go.  It would be unsecured so that is a much higher rate because there is no collateral.  I recently took one out and it was like 10% for 3 years.  My student loans are only 6.5% and your right there are many more deferment options available for student loans that aren’t available on other loans.  

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